CELESTICA INC (CLS) Stock Fundamental Analysis
NYSE:CLS - New York Stock Exchange, Inc. - CA15101Q2071 - Common Stock
We assign a fundamental rating of 7 out of 10 to CLS. CLS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making CLS a very profitable company, without any liquidiy or solvency issues. CLS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make CLS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year CLS was profitable.
In the past year CLS had a positive cash flow from operations.
Each year in the past 5 years CLS has been profitable.
In the past 5 years CLS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CLS (6.36%) is better than 77.50% of its industry peers.
CLS has a better Return On Equity (20.73%) than 90.00% of its industry peers.
CLS has a better Return On Invested Capital (13.55%) than 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is in line with the industry average of 9.03%.
The 3 year average ROIC (8.21%) for CLS is below the current ROIC(13.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 20.73% | ||
| ROIC | 13.55% |
ROA(3y)2.99%
ROA(5y)2.52%
ROE(3y)9.87%
ROE(5y)7.82%
ROIC(3y)8.21%
ROIC(5y)6.5%
1.3 Margins
The Profit Margin of CLS (4.08%) is better than 66.67% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
The Operating Margin of CLS (5.61%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CLS has grown nicely.
With a Gross Margin value of 10.47%, CLS is not doing good in the industry: 78.33% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.61% | ||
| PM (TTM) | 4.08% | ||
| GM | 10.47% |
OM growth 3Y33.83%
OM growth 5Y14.59%
PM growth 3Y42.53%
PM growth 5Y15.53%
GM growth 3Y11.64%
GM growth 5Y8.47%
2. Health
2.1 Basic Checks
CLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
Compared to 5 years ago, CLS has less shares outstanding
CLS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.02 indicates that CLS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.02, CLS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
CLS has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as CLS would need 2.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.47, CLS is in the better half of the industry, outperforming 71.67% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that CLS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.49, CLS is doing worse than 73.33% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 4.02 |
ROIC/WACC1.47
WACC9.19%
2.3 Liquidity
CLS has a Current Ratio of 1.47. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.47, CLS is doing worse than 77.50% of the companies in the same industry.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
CLS has a Quick ratio of 0.87. This is amonst the worse of the industry: CLS underperforms 85.00% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.09% over the past year.
The Earnings Per Share has been growing by 17.61% on average over the past years. This is quite good.
Looking at the last year, CLS shows a quite strong growth in Revenue. The Revenue has grown by 17.52% in the last year.
Measured over the past years, CLS shows a small growth in Revenue. The Revenue has been growing by 3.72% on average per year.
EPS 1Y (TTM)60.09%
EPS 3Y34.89%
EPS 5Y17.61%
EPS Q2Q%60%
Revenue 1Y (TTM)17.52%
Revenue growth 3Y11.47%
Revenue growth 5Y3.72%
Sales Q2Q%22.33%
3.2 Future
The Earnings Per Share is expected to grow by 27.81% on average over the next years. This is a very strong growth
Based on estimates for the next years, CLS will show a quite strong growth in Revenue. The Revenue will grow by 14.98% on average per year.
EPS Next Y60.56%
EPS Next 2Y35.81%
EPS Next 3Y27.49%
EPS Next 5Y27.81%
Revenue Next Year21.69%
Revenue Next 2Y15.16%
Revenue Next 3Y14.11%
Revenue Next 5Y14.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.08, CLS can be considered very expensive at the moment.
61.67% of the companies in the same industry are more expensive than CLS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (28.29), we can say CLS is valued inline with the index average.
The Price/Forward Earnings ratio is 26.35, which means the current valuation is very expensive for CLS.
The rest of the industry has a similar Price/Forward Earnings ratio as CLS.
The average S&P500 Price/Forward Earnings ratio is at 24.44. CLS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 26.35 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CLS is cheaper than 60.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CLS is valued a bit cheaper than the industry average as 61.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.01 | ||
| EV/EBITDA | 20.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
CLS's earnings are expected to grow with 27.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)1.88
EPS Next 2Y35.81%
EPS Next 3Y27.49%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CELESTICA INC
NYSE:CLS (1/21/2025, 8:04:00 PM)
Premarket: 121.34 +3.24 (+2.74%)118.1
+4.82 (+4.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners83.02%
Inst Owner Change-0.12%
Ins Owners1.24%
Ins Owner Change-2.5%
Market Cap13.74B
Analysts82.22
Price Target60.72 (-48.59%)
Short Float %2.08%
Short Ratio1.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.65%
Min EPS beat(2)10.52%
Max EPS beat(2)10.78%
EPS beat(4)4
Avg EPS beat(4)12.62%
Min EPS beat(4)10.52%
Max EPS beat(4)17.99%
EPS beat(8)8
Avg EPS beat(8)9.63%
EPS beat(12)12
Avg EPS beat(12)9.97%
EPS beat(16)16
Avg EPS beat(16)9.91%
Revenue beat(2)2
Avg Revenue beat(2)3.88%
Min Revenue beat(2)2.4%
Max Revenue beat(2)5.37%
Revenue beat(4)4
Avg Revenue beat(4)3.44%
Min Revenue beat(4)1.78%
Max Revenue beat(4)5.37%
Revenue beat(8)8
Avg Revenue beat(8)2.95%
Revenue beat(12)11
Avg Revenue beat(12)3.32%
Revenue beat(16)13
Avg Revenue beat(16)2.36%
PT rev (1m)14.36%
PT rev (3m)26.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.95%
EPS NY rev (1m)0%
EPS NY rev (3m)6.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 26.35 | ||
| P/S | 1.49 | ||
| P/FCF | 36.01 | ||
| P/OCF | 25.55 | ||
| P/B | 7.55 | ||
| P/tB | 11.86 | ||
| EV/EBITDA | 20.47 |
EPS(TTM)3.57
EY3.02%
EPS(NY)4.48
Fwd EY3.79%
FCF(TTM)3.28
FCFY2.78%
OCF(TTM)4.62
OCFY3.91%
SpS79.42
BVpS15.64
TBVpS9.96
PEG (NY)0.55
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 20.73% | ||
| ROCE | 17.92% | ||
| ROIC | 13.55% | ||
| ROICexc | 15.72% | ||
| ROICexgc | 21.4% | ||
| OM | 5.61% | ||
| PM (TTM) | 4.08% | ||
| GM | 10.47% | ||
| FCFM | 4.13% |
ROA(3y)2.99%
ROA(5y)2.52%
ROE(3y)9.87%
ROE(5y)7.82%
ROIC(3y)8.21%
ROIC(5y)6.5%
ROICexc(3y)9.62%
ROICexc(5y)7.81%
ROICexgc(3y)13.89%
ROICexgc(5y)11.15%
ROCE(3y)10.86%
ROCE(5y)8.6%
ROICexcg growth 3Y33.48%
ROICexcg growth 5Y11.53%
ROICexc growth 3Y32.77%
ROICexc growth 5Y11.81%
OM growth 3Y33.83%
OM growth 5Y14.59%
PM growth 3Y42.53%
PM growth 5Y15.53%
GM growth 3Y11.64%
GM growth 5Y8.47%
F-Score8
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 86.92% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 8.74 | ||
| Cash Conversion | 77.08% | ||
| Profit Quality | 101.17% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 4.02 |
F-Score8
WACC9.19%
ROIC/WACC1.47
Cap/Depr(3y)64.87%
Cap/Depr(5y)59.28%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.26%
Profit Quality(3y)140.8%
Profit Quality(5y)221.3%
High Growth Momentum
Growth
EPS 1Y (TTM)60.09%
EPS 3Y34.89%
EPS 5Y17.61%
EPS Q2Q%60%
EPS Next Y60.56%
EPS Next 2Y35.81%
EPS Next 3Y27.49%
EPS Next 5Y27.81%
Revenue 1Y (TTM)17.52%
Revenue growth 3Y11.47%
Revenue growth 5Y3.72%
Sales Q2Q%22.33%
Revenue Next Year21.69%
Revenue Next 2Y15.16%
Revenue Next 3Y14.11%
Revenue Next 5Y14.98%
EBIT growth 1Y42.82%
EBIT growth 3Y49.18%
EBIT growth 5Y18.85%
EBIT Next Year80.04%
EBIT Next 3Y30.47%
EBIT Next 5Y28.61%
FCF growth 1Y122.77%
FCF growth 3Y17.7%
FCF growth 5YN/A
OCF growth 1Y104.95%
OCF growth 3Y21.5%
OCF growth 5Y66.98%